Earning-dividends when all other factors are held constant

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Reference no: EM131045657

Which of the following statements accurately describes the relationship between earning and dividends when all other factors are held constant?

1. Paying a higher percentage of earnings as dividends will result in a higher growth rate.

2. Dividend growth and earnings growth are unrelated.

3. Long-Run earnings growth occurs primarily because firms retain earnings and reinvest them in the business.

Reference no: EM131045657

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